AM Whitepaper

  • The benefits of a Tech Stack
  • Understanding software integration
  • Ways to find software that communicates well
  • Well-paired tech stacks save time and money. [/fusion_text][fusion_button link="https://www.foundationsoft.com/learn/the-best-construction-software-tech-stack-for-your-business/?&utm_source=cfma&utm_medium=referral&utm_campaign=ref-sus-cicpac-blog-q2-apr-2024" title="" target="_blank" link_attributes="" alignment_medium="" alignment_small="" alignment="" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color_hover="" hue="" saturation="" lightness="" alpha="" button_gradient_top_color="" button_gradient_bottom_color_hover="" button_gradient_bottom_color="" gradient_start_position="" gradient_end_position="" gradient_type="" radial_direction="" linear_angle="180" accent_hover_color="" accent_color="" type="" bevel_color="" bevel_color_hover="" border_top="" border_right="" border_bottom="" border_left="" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" border_hover_color="" border_color="" size="" padding_top="" padding_right="" padding_bottom="" padding_left="" fusion_font_family_button_font="" fusion_font_variant_button_font="" font_size="" line_height="" letter_spacing="" text_transform="" stretch="default" margin_top="" margin_right="" margin_bottom="" margin_left="" icon="" icon_position="left" icon_divider="no" hover_transition="none" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""]Continue Reading[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">Building an Optimal Tech Stack for Your Business

    A tech stack is a cohesive group of software that seamlessly communicates with each other to modernize operations. Your construction clients can use a [...]

    By |2024-04-19T11:38:27-05:00April 19th, 2024|AM Whitepaper, CICPAC, Construction|

    As construction companies explore different ways to keep costs low, more and more contractors are turning to job costing.

    Efficient job costing can lead to improved profitability, enhanced data transparency and better expense tracking. With job costing, contractors are always aware of how much money is moving throughout the project, but implementing a job cost structure can be confusing. That’s why Foundation Software created The Ultimate Guide to Job Costing — an article filled with insights on effective job costing strategies. This article includes details about:
    • How a job cost system tracks spending
    • The different types of job cost reports
    • How to test the effectiveness of your job cost structure
    • How to utilize cost codes
    Profitable construction jobs are the product of well-managed cost systems. Continue reading to see all the benefits of a construction job cost accounting system. [/fusion_text][fusion_button link="https://www.foundationsoft.com/learn/the-ultimate-guide-to-construction-job-costing/" title="" target="_blank" link_attributes="" alignment_medium="" alignment_small="" alignment="" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color_hover="" hue="" saturation="" lightness="" alpha="" button_gradient_top_color="" button_gradient_bottom_color_hover="" button_gradient_bottom_color="" gradient_start_position="" gradient_end_position="" gradient_type="" radial_direction="" linear_angle="180" accent_hover_color="" accent_color="" type="" bevel_color="" bevel_color_hover="" border_top="" border_right="" border_bottom="" border_left="" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" border_hover_color="" border_color="" size="" padding_top="" padding_right="" padding_bottom="" padding_left="" fusion_font_family_button_font="" fusion_font_variant_button_font="" font_size="" line_height="" letter_spacing="" text_transform="" stretch="default" margin_top="" margin_right="" margin_bottom="" margin_left="" icon="" icon_position="left" icon_divider="no" hover_transition="none" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""]Continue Reading[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">The Ultimate Guide to Construction Job Costing

    As construction companies explore different ways to keep costs low, more and more contractors are turning to job costing. Efficient job costing can lead [...]

    By |2024-02-14T13:28:46-05:00February 14th, 2024|AM Whitepaper, CICPAC, Construction|

    "In construction, you are continually trying to strike the right balance in so many areas — from crews and equipment, to bids, billings, and job costs. Because they are so important, you want to make those predictive calls based on the story being told by your data, without overly relying on gut feelings and rearview-mirror information, which has been the historical norm." - Bruce Orr, CEO at ProNovos

    [/fusion_text][fusion_text columns="" column_min_width="" column_spacing="" rule_style="" rule_size="" rule_color="" hue="" saturation="" lightness="" alpha="" content_alignment_medium="" content_alignment_small="" content_alignment="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" margin_top="" margin_right="" margin_bottom="" margin_left="" fusion_font_family_text_font="" fusion_font_variant_text_font="" font_size="" line_height="" letter_spacing="1.25" text_transform="" text_color="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" logics=""]

    Explore essential financial concepts and gain insights from industry experts in this eBook, covering job costing, project forecasting, change order management, revenue recognition, billings, and project-level cash flow.

    Inside this eBook, you will discover:

    • Simplified Financial Wisdom: A breakdown of intricate financial concepts into easy-to-digest insights, empowering you to excel in a project’s financial management
    • Expert Insights: Hear from industry experts, including project managers, financial advisors and construction business owners
    • Financial Mastery: Build a solid foundation for cash flow management and profitability
      Advanced Strategies: Discover methodologies and tools to optimize profitability across projects

    [/fusion_text][fusion_button link="https://cicpac.com/wp-content/uploads/2023/11/ConMgrGuidetoFinance-1.pdf" title="" target="_blank" link_attributes="" alignment_medium="" alignment_small="" alignment="center" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color_hover="" hue="" saturation="" lightness="" alpha="" button_gradient_top_color="" button_gradient_bottom_color_hover="" button_gradient_bottom_color="" gradient_start_position="" gradient_end_position="" gradient_type="" radial_direction="" linear_angle="180" accent_hover_color="" accent_color="" type="" bevel_color="" bevel_color_hover="" border_top="" border_right="" border_bottom="" border_left="" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" border_hover_color="" border_color="" size="" padding_top="" padding_right="" padding_bottom="" padding_left="" fusion_font_family_button_font="" fusion_font_variant_button_font="" font_size="" line_height="" letter_spacing="" text_transform="" stretch="default" margin_top="4%" margin_right="" margin_bottom="4%" margin_left="" icon="fa-arrow-alt-circle-down fas" icon_position="right" icon_divider="no" hover_transition="none" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""]Download eBook[/fusion_button][/fusion_builder_column][fusion_builder_column type="1_4" layout="1_4" align_self="auto" content_layout="column" align_content="flex-start" valign_content="flex-start" content_wrap="wrap" spacing="" center_content="no" column_tag="div" link="" target="_self" link_description="" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" type_medium="" type_small="" flex_grow_medium="" flex_grow_small="" flex_grow="" flex_shrink_medium="" flex_shrink_small="" flex_shrink="" order_medium="0" order_small="0" dimension_spacing_medium="" dimension_spacing_small="" dimension_spacing="" dimension_margin_medium="" dimension_margin_small="" margin_top="" margin_bottom="" padding_medium="" padding_small="" padding_top="" padding_right="" padding_bottom="" padding_left="" hover_type="none" border_sizes="" border_color_hover="" border_color="" border_style="solid" border_radius="" box_shadow="no" dimension_box_shadow="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" z_index_hover="" z_index="" overflow="" background_type="single" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" background_color_medium="" background_color_small="" background_color_medium_hover="" background_color_small_hover="" background_color_hover="" background_color="" background_image_medium="" background_image_small="" background_image="" background_image_id_medium="" background_image_id_small="" background_image_id="" lazy_load="avada" skip_lazy_load="" background_position_medium="" background_position_small="" background_position="left top" background_repeat_medium="" background_repeat_small="" background_repeat="no-repeat" background_size_medium="" background_size_small="" background_size="" background_custom_size="" background_custom_size_medium="" background_custom_size_small="" background_blend_mode_medium="" background_blend_mode_small="" background_blend_mode="none" render_logics="" sticky="off" sticky_devices="small-visibility,medium-visibility,large-visibility" sticky_offset="" absolute="off" absolute_props="" filter_type="regular" filter_hover_element="self" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" transform_type="regular" transform_hover_element="self" transform_scale_x="1" transform_scale_y="1" transform_translate_x="0" transform_translate_y="0" transform_rotate="0" transform_skew_x="0" transform_skew_y="0" transform_scale_x_hover="1" transform_scale_y_hover="1" transform_translate_x_hover="0" transform_translate_y_hover="0" transform_rotate_hover="0" transform_skew_x_hover="0" transform_skew_y_hover="0" transform_origin="" transition_duration="300" transition_easing="ease" transition_custom_easing="" motion_effects="" scroll_motion_devices="small-visibility,medium-visibility,large-visibility" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" last="true" border_position="all" first="false" spacing_left="1%"][fusion_imageframe image_id="7400|full" aspect_ratio="" custom_aspect_ratio="100" aspect_ratio_position="" skip_lazy_load="" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" max_width="" sticky_max_width="" align_medium="none" align_small="none" align="none" mask="" custom_mask="" mask_size="" mask_custom_size="" mask_position="" mask_custom_position="" mask_repeat="" style_type="" blur="" stylecolor="" hue="" saturation="" lightness="" alpha="" hover_type="none" magnify_full_img="" magnify_duration="120" scroll_height="100" scroll_speed="1" margin_top_medium="" margin_right_medium="" margin_bottom_medium="" margin_left_medium="" margin_top_small="" margin_right_small="" margin_bottom_small="" margin_left_small="" margin_top="" margin_right="" margin_bottom="" margin_left="" bordersize="" bordercolor="" borderradius="" z_index="" caption_style="off" caption_align_medium="none" caption_align_small="none" caption_align="none" caption_title="" caption_text="" caption_title_tag="2" fusion_font_family_caption_title_font="" fusion_font_variant_caption_title_font="" caption_title_size="" caption_title_line_height="" caption_title_letter_spacing="" caption_title_transform="" caption_title_color="" caption_background_color="" fusion_font_family_caption_text_font="" fusion_font_variant_caption_text_font="" caption_text_size="" caption_text_line_height="" caption_text_letter_spacing="" caption_text_transform="" caption_text_color="" caption_border_color="" caption_overlay_color="" caption_margin_top="" caption_margin_right="" caption_margin_bottom="" caption_margin_left="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0"]https://cicpac.com/wp-content/uploads/2023/11/Cover_A-Construction-Managers-Guide-to-Project-Financials.jpg[/fusion_imageframe][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

    " target="_blank">A Construction Manager’s Guide to Project Financials

    "In construction, you are continually trying to strike the right balance in so many areas — from crews and equipment, to bids, billings, and [...]

    By |2023-11-10T13:12:33-05:00November 10th, 2023|AM Whitepaper, CICPAC, Construction|

    As published in ENR 10/2/23, authored by Mike Karlins, CPA, CRIS, Senior Client Advisor, American Global After years of discussion, revisions and a pandemic-induced delay, the Financial Accounting Standards Board (FASB) finally brought the new lease accounting rule, ASC 842 (Accounting Standards Codification 842), to the forefront. Prior to the implementation of ASC 842 (which became effective for private companies in years beginning after December 15, 2021), lease accounting required companies to classify leases as either operating or capital. Operating leases were not recorded on the balance sheet, which led to the potential understatement of a company’s liabilities and overstatement of its financial performance. ASC 842 aims to address those issues and achieve the four following objectives:
    • Increased Transparency: Under ASC 842, both operating leases and finance (capital) leases are required to be recognized on the balance sheet, enhancing transparency, and ensuring that financial statements more accurately reflect a company’s financial position and obligations.
    • Improved Comparability: The standard’s more consistent methodology provides a better framework for recognizing and measuring lease assets and liabilities, which allows stakeholders to better compare financial information across companies in the same industry.
    • Improved Risk Assessment: With a more comprehensive view of lease obligations, sureties can better assess a firm’s financial risk and its ability to handle lease-related expenses.
    • Enhanced Decision-Making: With lease obligations explicitly stated on the balance sheet, investors, creditors and other users of financial statements can make more informed decisions about a company’s financial health, its ability to meet future lease payments, its capacity to complete projects and its overall lease-related risk exposure.
    The question for the construction industry is, then, with these changes, do surety underwriters now view a contractor’s financial statements differently? After speaking with staff experts and several underwriters from the surety industry, the answer appears to be a resounding “no.” Many stated that footnotes to financial statements included future lease payments, therefore, surety underwriters were already including those figures in their analysis of short-term and long-term obligations. So, while for some industries the implementation of ASC 842 may have been significant, for contractors, the new lease accounting rules were a non-event, more optical than substantive. Sureties seem to have taken the position that there has been no change in the contractor’s business, so why should our underwriting change?

    About American Global

    American Global is one of the largest privately held insurance and surety brokerage firms in the U.S., specializing in all aspects of construction risk management. They support contractors, owners, and developers throughout the entire scope of their project and across every milestone of their business, protecting against the risks and exposures specific to the construction industry. American Global has multiple offices across the United States, as well as in Canada, England, and Italy, to serve clients throughout North America, Latin America, the United Kingdom and Europe. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">New Lease Accounting Standard and the Impact on Surety Underwriting 

    As published in ENR 10/2/23, authored by Mike Karlins, CPA, CRIS, Senior Client Advisor, American Global After years of discussion, revisions and a pandemic-induced [...]

    By |2023-10-06T14:34:50-05:00October 6th, 2023|AM Whitepaper, CICPAC, Construction|

    Article by American Global, published on the IRMI website

    While the latter half of 2022 brought some relief from the worst impacts of the global pandemic, supply chain disruptions, labor challenges, and significant commodity price spikes, we are now challenged with a national economy that is dealing with the highest inflation in 40 years. This inflationary pressure and increasing labor costs have caused key central banks to take action to tame inflation, creating the swiftest rise in interest rates in decades, which opens up a real potential for a recession in 2023.

    For our industry, the next logical question becomes, "What impacts will this have on the construction community, and specifically, how will sureties react when it comes to underwriting new (and even existing) clients?"

    Sections covered in article:

    [/fusion_text][fusion_button link="https://www.irmi.com/articles/expert-commentary/surety-outlook-and-underwriting-changes-in-work-in-progress" title="" target="_blank" link_attributes="" alignment_medium="" alignment_small="" alignment="center" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color_hover="" hue="" saturation="" lightness="" alpha="" button_gradient_top_color="" button_gradient_bottom_color_hover="" button_gradient_bottom_color="" gradient_start_position="" gradient_end_position="" gradient_type="" radial_direction="" linear_angle="180" accent_hover_color="" accent_color="" type="" bevel_color="" bevel_color_hover="" border_top="" border_right="" border_bottom="" border_left="" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" border_hover_color="" border_color="" size="" padding_top="" padding_right="" padding_bottom="" padding_left="" fusion_font_family_button_font="" fusion_font_variant_button_font="" font_size="" line_height="" letter_spacing="" text_transform="" stretch="default" margin_top="" margin_right="" margin_bottom="" margin_left="" icon="" icon_position="left" icon_divider="no" hover_transition="none" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""]Continue Reading[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">Surety Outlook and Underwriting Changes in Work-in-Progress

    Article by American Global, published on the IRMI websiteWhile the latter half of 2022 brought some relief from the worst impacts of the global pandemic, [...]

    By |2023-07-25T15:46:14-05:00July 25th, 2023|AM Whitepaper, CICPAC|

    A look at 10 best practices contractors should be looking at to modernize and stay relevant in this new age of construction Construction projects grow in magnitude and complexity every year, demanding more time, resources and creativity from contractors. The business of  construction used to rely on traditional building processes and tools—pen and paper, faxes, emails, spreadsheets—but these methods can no longer keep up with modern construction’s increasingly complex projects and demands for real-time data and workflows. It took a while for construction management to come around, but now it’s widely accepted that the old ways of doing things just won’t work anymore. Veterans of the industry realize that a tech-focused approach is the only way to complete their projects on time and meet client expectations. This mentality shift has led contractors to:
    • Digitize documentation to cut needless paper out of the equation
    • Implement cloud technologies to instantly share data and streamline workflows
    • Implement modern reporting and data analytics tools for optimized decision-making
    • Use mobile applications to open access to data and improve workflows in the field
    • Add new technologies that automatically complete essential daily tasks, including payroll, HR, invoicing, data collection, and other processes that previously took multiple steps and people to complete
    [/fusion_text][fusion_button link="https://cicpac.com/wp-content/uploads/2023/06/10-Construction-Best-Practices_USL_0623.pdf" title="" target="_blank" link_attributes="" alignment_medium="" alignment_small="" alignment="" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color_hover="" hue="" saturation="" lightness="" alpha="" button_gradient_top_color="" button_gradient_bottom_color_hover="" button_gradient_bottom_color="" gradient_start_position="" gradient_end_position="" gradient_type="" radial_direction="" linear_angle="180" accent_hover_color="" accent_color="" type="" bevel_color="" bevel_color_hover="" border_top="" border_right="" border_bottom="" border_left="" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" border_hover_color="" border_color="" size="" padding_top="" padding_right="" padding_bottom="" padding_left="" fusion_font_family_button_font="" fusion_font_variant_button_font="" font_size="" line_height="" letter_spacing="" text_transform="" stretch="default" margin_top="20px" margin_right="" margin_bottom="20px" margin_left="" icon="" icon_position="left" icon_divider="no" hover_transition="none" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""]Continue Reading[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">10 Construction Best Practices You Should Be Doing Right Now

    A look at 10 best practices contractors should be looking at to modernize and stay relevant in this new age of construction Construction projects [...]

    By |2023-07-25T15:46:20-05:00June 30th, 2023|AM Whitepaper, CICPAC, Construction|

    Tyler Mains, CPA/ABV, Managing Director and Demetri Pazarentzos, Director for their article. Check out bios on Tyler or Demitri via the Lazear Capital Partners website. An Employee Stock Ownership Plan (ESOP) is a great solution for owners of construction companies looking to diversify their personal wealth, develop a succession plan, and/or seek an avenue to reward their employees. However, there are many factors to consider when a company who utilizes bonding is exploring or undertaking an ESOP. Because the surety relationship is vital to the operations and long-term success of many contractors, it is important to partner with the surety early in the ESOP process. The surety is focused on supporting a company’s current and future bonding needs, while reducing or mitigating any potential risk. A leveraged ESOP can cause changes to the structure of a company’s balance sheet as a result of the likelihood of additional debt used to assist in financing the ESOP transaction. If the transaction and associated financing is structured correctly, the perfect balance of financial benefits to company owners, significant upside for key management and employees, and a favorable structure for both the surety and the lender can be achieved. The following items should be considered for companies with surety relationships during an ESOP formation:
    1. Advisors – surrounding the company with knowledgeable advisors who are well-versed in both the construction industry and ESOP transactions is key to ensuring a favorable transaction structure that maximizes benefits for the company owners, while maintaining flexibility for the company post-closing.
    2. Bank and Surety – running a parallel track with open communication to understand each stakeholders concerns or needs (i.e., “giving a seat at the table” early in the ESOP transaction process) leads to a structure that provides adequate financing to consummate the transaction, significant flexibility to support future working capital and capital expenditure requirements of the company, and maintains ample balance sheet strength to support ongoing bonding needs.
    3. Current Bonding Program – evaluating the following items of a company’s bonding program is important to aid in the surety’s analysis of bonding needs moving forward, which can have a significant impact on the surety’s comfort level in regards to balance sheet changes and financing proposed in the ESOP transaction: - Individual and aggregate project bonding limits - Accounts receivable and projects currently bonded (remaining work to be completed vs. total contract value) - Makeup of bonded vs. unbonded projects in backlog and pipeline - The timing and phases of bonded projects (planning/design phase vs. true construction underway) - Current and future working capital and equity levels (as adjusted for specific components found in an ESOP structure)
    4. Managing Personal and Corporate Guarantees – with owners of the company transitioning their ownership to the ESOP trust, special consideration to current and future guarantees required should be discussed during the transaction. An understanding of expectations of the bank or surety regarding guarantees and changes to these requirements (and the timing of these potential changes) is key to mitigating personal exposure for owners who may no longer have an ownership stake in the company.
    Overall, a surety is focused on the continuity of the business, with particular attention to adequate financial strength and liquidity and management retention post-ESOP transaction. When structured correctly, an ESOP can be a powerful tool to aide in the long-term succession plan for construction companies and make an extremely positive impact on the lives of employees, key management, and company owners. Additionally, an ESOP-owned company can provide productivity improvements, tax benefits, and a clear competitive advantage in the labor market, all of which can be expected to drive financial performance. Our professionals are here to advise you on structuring a favorable ESOP transaction with lenders and your surety, while maximizing benefits for selling company owners.  " target="_blank">Four Considerations for Construction Companies Exploring or Undertaking an ESOP

    Thanks to Tyler Mains, CPA/ABV, Managing Director and Demetri Pazarentzos, Director for their article. Check out bios on Tyler or Demitri via the Lazear Capital [...]

    By |2023-05-30T14:08:05-05:00May 30th, 2023|AM Whitepaper, CICPAC, Construction|

    Maintaining profits and keeping jobs on track is not easy in the construction industry. There are bills to pay, materials to order, teams to manage, and everything else in between. That’s why you need accurate, real-time Work in Progress (WIP) reports to keep projects running smoothly—and to grow your
    bottom-line profit.

    So, how does it all work? We’ll deep-dive into all there is to know about WIP reporting and how you can set your projects and business up for success.

    In this white paper from Deltek ComputerEase, explore:

    • Whta is Work in Progress
    • Overbilling Versus Underbilling
    • What Should a WIP Report Include?
    • How Often Should You Run a WIP Report?
    • Automation of Work in Progress
    • How to Create an Accurate WIP Report
    • What steps do you need to take to achieve accurate WIP Reporting?
    • Common WIP Report Mistakes to Avoid
    • How to Compare and Analyze WIP Report from Different Time Periods
    • How Construction  Accounting Software Can Help
    [/fusion_text][fusion_button link="https://cicpac.com/wp-content/uploads/2023/03/Deltek_ComputerEase_How_Work_in_Progress_Can_Work_for_You.pdf" title="" target="_blank" link_attributes="" alignment_medium="" alignment_small="" alignment="center" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color="" hue="" saturation="" lightness="" alpha="" button_gradient_bottom_color="" button_gradient_top_color_hover="" button_gradient_bottom_color_hover="" gradient_start_position="" gradient_end_position="" gradient_type="" radial_direction="" linear_angle="180" accent_color="" accent_hover_color="" type="" bevel_color="" bevel_color_hover="" border_top="" border_right="" border_bottom="" border_left="" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" border_color="" border_hover_color="" size="" padding_top="" padding_right="" padding_bottom="" padding_left="" fusion_font_family_button_font="" fusion_font_variant_button_font="" font_size="" line_height="" letter_spacing="" text_transform="" stretch="default" margin_top="" margin_right="" margin_bottom="" margin_left="" icon="" icon_position="left" icon_divider="no" hover_transition="none" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""]Download White Paper[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">How Work in Progress (WIP) Can Work for You

    Maintaining profits and keeping jobs on track is not easy in the construction industry. There are bills to pay, materials to order, teams to manage, [...]

    By |2023-07-25T15:46:34-05:00March 28th, 2023|AM Whitepaper, CICPAC|

    Written by Dave McGuire, Shareholder, McGuire Sponsel The Energy Policy Act of 2005 established certain incentives for building energy efficient buildings. These included the 45L tax credit for the construction of energy efficient single-family homes, and the 179D deduction for the construction of other energy efficient properties. Since 2005, very little has changed with these provisions other than extensions to allow businesses to continue to benefit from these tax provisions. In 2022, the Inflation Reduction Act (IRA) drastically changed not only the amount of these benefits, but also some of the underlying calculations associated with the incentives. To understand the changes to 179D, let’s first start with the rules prior to the IRA. Prior to the IRA companies building energy efficient buildings were allowed a deduction of up to $1.80/sf (adjusted for inflation). To take this deduction, the building was compared to the ASHRAE 90.1-2007 standard, if the building reduced the energy consumption by 50 percent as compared to the standard a company was allowed a full deduction. Additionally partial deductions of $0.60/sf were allowed for reductions in energy consumption across the building envelope, lighting system, or mechanical systems. Finally in the case of government owned buildings that qualified, the government agency could transfer the deduction to the designer “primarily responsible for the energy efficient design.” This means architects and engineers designing government buildings were also eligible for this deduction. The IRA changed this deduction in three ways. First it changes the calculation. Instead of partial deductions for each building system the deduction is changed to a calculation based on reducing the energy consumption of the building by at least 25 percent. The new law also increases the ability to transfer the deduction. Now in addition to government buildings having the ability to transfer the deduction to the designer, the ability has also been provided to tax-exempt organizations. This means private colleges, churches, and other tax-exempt entities can transfer the deduction to the person responsible for the energy efficient design. Finally, the amount of the deduction is changed from $1.80/sf to a sliding scale from $0.50/sf to $1.00/sf. Many people may understand the change to the amount of the deduction above and be confused as many of the bill’s proponents have touted that it increases the amount of the deduction. That is because the bill introduces a concept where deductions and credits are increased if the company involved pays “prevailing wages”. Under this rule, if a company pays the prevailing wages detailed on the sam.gov website, they can multiply their deduction by 500 percent. This means that if prevailing wage requirements are met the deduction amount goes up to $2.50 to $5.00/sf. However, for many businesses the prevailing wage requirements may be hard to meet as it applies to all contractors working on the property, this would include painters, landscapers, and other unskilled trades. The other real estate related tax incentive included in this bill is an extension and change to the 45L tax credit. The 45L tax credit had expired at the end of 2021, but this law extends the existing tax credit through 2022 and modifies it for years 2023 through 2032. The existing law, in place through the end of 2022, allows for a $2,000 per unit tax credit for the construction of low-rise residential construction. This includes new homes, apartments, and even assisted living facilities if they are three stories or less above grade. To take this credit, the home had to be 50 percent more efficient than the International Energy Conservation Code (IECC). Starting in 2023, the 45L credit changes drastically. First, instead of being tied to the IECC code, the credit is now tied to Energy Star. Second the credit amount is now adjusted as follows:
    • Single Family Homes Meeting Energy Star Single Family Home Standard - $2,500
    • Single Family Homes Certified as Zero Energy Ready - $5,000
    • Multifamily Homes meeting Energy Star Multifamily New Construction - $500*
    • Multifamily Homes meeting Energy Star Zero Energy Ready Multifamily - $1000*

    *Multifamily homes receive a 500% increase if prevailing wage requirements are met

    The new requirement to tie the credit to energy star raises many questions. First it relates to the three-story requirement. Under the old rules, homes were limited at three stories or less above grade, this was based on the standards under the IECC code. Energy Star does not have the same three-story limitation; however, they do split multifamily into multifamily high rise, midrise, and low rise. The IRS has still not confirmed if the three-story limitation still applies. The bigger issue with energy star is that it cannot be done after the fact based on the current standards. Under the old rules most developers would complete a project, then ask a 45L certification company to confirm the benefit. However, energy star requires that the contractor be working within the energy star requirements from the beginning. This may exclude developers from taking the deduction until they work to become energy star certified. Finally, the limitation of $500 for multifamily when prevailing wages are not met, may limit the applicability to many companies, as the cost to certify and claim the credit may outstrip the benefit. As evidenced above the changes to 179D and 45L are significant and confusing. It is critical that taxpayers talk to professionals who are versed in these changes to ensure that they have access to the deductions and credits moving forward. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">How the Inflation Reduction Act of 2022 Changed and Modified 179D and 45L

    Written by Dave McGuire, Shareholder, McGuire Sponsel The Energy Policy Act of 2005 established certain incentives for building energy efficient buildings. These included the [...]

    By |2023-02-28T08:02:48-05:00February 22nd, 2023|AM Whitepaper, CICPAC|

    Alexander Bagne, CPA, JD, MBA, CCSP is the President of ICS Tax, LLC, and an expert in tax planning strategies for real estate investors, architecture and engineering firms, and others within the construction industry. He is a strong proponent of energy efficient construction and has served as the President of the American Society of Cost Segregation Professionals (ASCSP). This article was re-published from ICS-tax.com ‘The Inflation Reduction Act Significantly Changes the 179D Energy Efficient Commercial Building Deduction’" target="_blank">Section 179D Energy Efficient Commercial Building Deduction

    The Section 179D Energy Efficient Commercial Building Deduction provides a deduction of up to $1.88 per square foot for both building owners who construct new [...]

    By |2023-02-22T16:10:47-05:00September 19th, 2022|AM Whitepaper, CICPAC, Construction|
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